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Nokia, Motorola extend licensing agreement to cover LTE

18 октября 2010

Nokia Corp. and Motorola Inc. said Friday that the two companies had extended an existing licensing agreement to cover fourth-generation wireless technology.

The agreement covers 4G cellular technologies including Long-Term Evolution, WiMax and LTE-Advanced. The terms of the agreement weren't disclosed.

The licensing agreement marks a rare instance of compromise when technology companies--particularly in the mobile arena--are more prone to fire off lawsuits against each other. With the smartphone battles heating up, companies have used lawsuits as another way of slowing down and distracting their competitors.

Motorola and Nokia, for instance, have each filed lawsuits against Apple Inc., while Microsoft has a lawsuit pending against Motorola. Spokesmen from both companies weren't available to provide updates to those cases.

"This agreement shows that the industry is making fast progress in resolving LTE licensing issues between the major patent holders," Paul Melin, vice president of intellectual property for Nokia, said in a statement.

Motorola believes the agreement will foster further innovation in the industry, said Kirk Dailey, vice president of intellectual property for the company's Motorola Mobility unit.

The move to 4G is crucial to both companies. Motorola has invested significantly in WiMax, and is looking at LTE as an opportunity to spur its handset division's turnaround. Nokia is likewise looking at 4G as an opportunity to reestablish its leadership in the smartphone business.

Motorola shares rose 0.5% to $8. Nokia fell 0.3% to $10.93.

Источник: Total Telecom

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